tv Lou Dobbs Tonight FOX Business December 13, 2012 10:00pm-11:00pm EST
traveling with a church group after a disaster like a tsunami and hurricane sandy. grouus like these give the most money and volunteer time. i volunteered to help out after sandy but more came from churches. homeowners told the mormons use state. steven disappeared. we need both of you. thank you for watching. lou: good evening, everybody. president obama and the house speaker said they would not negotiate the fiscal cliff in public, but it appears that the majority and the most meaningful of those negotiations have, in
the sky taken place in publi today no exception with the speaker will have very public press conference demonstrating with unimpeachable clarity that spending cuts, not tax hikes, are the essentials resolution to the fiscal clough. the speaker used visual aids, this visual aid specifically to show how far government spending will be outpacing revenue in the years ahead, which makes utterly irrelevant the president's ultimate in on tax hikes. >> this line is that current baseline for revenue. here if the president got everything he wanted, over 1 trillion in taxes, this is what that would represent. but if you look at the spending problem you see it does nothing, nothing to solve the spending problem that our country as. lou: that very public demonstration of of flaw in the administration's fiscal logic
leading to a public request from president obama. he called the speaker to the white house for a 5:00 p.m. out-of-public-review meeting and both men ffering no public discussion of their very private meeting. luckily coincidence that it took place on this to my getaway day for the house of representatives and the senate. the lower chaer laving washington for a long weekend before the meeting. meanwhile, the white house confirmed today that susan rice won't be the next secretary of state. u.n. ambassador susan rice asking the president to remove her name from consideration to replace outgoing secretary of state content. democratic sources telling o ed henry that rice is likely to be thepresident's choice to become the next national security adviser. we take ll of that up here tonight with fox news digital politics editor from a veteran political strategist, former u.s. ambassador to the united nations.
now the late breaking devepments on the fiscal cliff talks and the impact of the withdral of susan rice from consideration to be the nxt secretary of state, fox news chief white house correspondent ed henry with our report. >> president obama was not fretting about the fiscal cliff as he strolled to a holiday party joking with fox news about the warm weather and expressing hope for a deal. >> how are you feeling about a deal, optimistic? >> the speaker not so hopeful. >> is this issue, spending. >> again railing against what he claims are not enough spending cuts in the white house proposal and slamming the president's push for executive power to raise the debt ceili, something he says democrats never would have given former president george w. bush. >> to you think there is any chance that senator reid or then senator obama would have done that? zero. congress has never come to give up our ability to control the purse.
>> a new poll suggests the public wants spending rain in with 49 percent saying the federal government provides too many services, 20% say too few services, 25 perce say the right amount. the talks are now so far off track, a senior democrat tells fox that a private dinner on wednesday senate majority leader harry reid told colleagues he now believes getting a major deal to avoid a fiscal cliff by christmas is almost impossible. unless they're is a dramatic last-minute agreement by the president and the speaker that includes tax and spending changes, momentum is gaining around a plan be in which the house pass the senate bill to extend the middle-class tax cuts and allowed taxes to go upon the rich and leaves the spending fight to next year. >> in case of emergency the house should break the glass. the house speaker ought to allow the republicans to vote on extending tax cuts for 98 percent of the american people which would deal with a chunk of the so-called fiscal
cliff. >> while the white house has been confident the president as the upper hand, new nbc news was street journal poll suggests otherwise. asked to gets the blameif washington goes off the cliff, 19 percent said the president and democrats, 24 percent said republicans, and 56 peent said they would be equally to blame. a new poll goes even further. asked if income-tax is go up to there be major spending cuts. 89 percent said yes. a 9 percent said no. lou: thank you. fox news chief white house correspondent. joining us with more on this battle over taxes, spending cuts, and whther there is any political leaders left in our nation's capital, political strategist, pollster and joining us fox news drizzle politics editor. gentlemen, tha you for being here. our colleague just rporting, and henry, that one possible outcome is that the republicans
say, oh, yeah. we will protect the middle class from tax hikes and go away for christmas and new year's and come back to talk spending cuts. how would you rate that in order of probability? >> it is getting increasingly probable, and it is a pretty simple reasonwhy. the republicans know, as the president said when he w talking to barbara walters, rates are going up. the only quesion is how are they going to go up. the president -- the reason the president is willing to talk at all right now is because of these across-the-board increases and cuts, but at the same time his best political leverage is thlooming increase for the majority offederal income tax payers. the thinking among some repuicans is by taking that out of the equation and just going ahead and extending it th can have a different discussion and can have the president's top smacking them around in public. lou: you know, with all deference year, if the speaker
needs some relief from this banking and slapping around that he's getting here, it seems like what he did today is the appropriate approach. he said, this is the l of the land. if you want to change the law of the land we have to deal with the issue that is, as he demonstrated to my don't know why it tk so long to put that chart out, but he did so. it's a spending problem. it's irresponsible to talk about taxes. in the logical significant for the president, but it is absolutely mningless in terms of feeling substantive -- dealing substantively and meaningfully with the spending problem that is utterly bankrupt in the country. >> it's about time he said that and it's about time his message were clear. if you think of the people are attacking him, you got to pay them to do it. he sounds more rational than some of those republicans. lou: those who would like to play their role, if you will, of eric cantor circa 2011. everybody got a lesson during
the tea party years. the speaker, even though there is much discussion in the national media, the speaker seems to have the lead of this party. he seems to have the support of this party, and those who are in opposition seem to be utterly on the fringe. >> the name of the game in politics, and we talk about this l the tme, managing expectations. the speaker has been held by the president tremendously in keeping his caucus together becausethe president has been so unstinting in his attacks on the republicans and unyielding on his question of taxes. very able to go back to his caucus. a real problem with this guy. and in the logical semantics fight, anda freeze are breaking apart we will be in big trouble quickly. lou: reseeded certainly command with the newest "wall street journal" nbc poll, it looks like the polling has improved or they started talking to ational
people who seem to see this as the fault of both republicans and democrats. >> it's -- it's great news that people are not being ideological about both parties fan. but the problem is, up until now the president is confronted with a strong component -- opponent. always tougher, but yeah, but the conclusion. lou: you do agree, heis that strong her opponent. >> a lot of people by all the way back to newt gingrich have gone bust betting against the speaker. deceiving the strong on a lot of these points. the great strength that he has is it does not make a lot of sudden moves, not pronee to erratic behavior. very steady and is seeing this through. the president believes there convince the president of the republicans have had it with him and don't trust them to do the bigger deal. if he does not come to the table with actual cuts there is no way that anything is going to happen
lou: receiving support as well in the latest polling by fox and the wall street journal. coming out and saying he wants to take a higher age -- he wants to make the age for qualification for medicare -- he wants to take that completely off the table. it looks as though the fractionalized nation is taking place within the democratic party of the republican. >> the president can go along with it. lou: will we ha a deal? >> it looks a lot more likely now than it did two days ago. the president certainly to my tank, has to understand that if he does play this game and take it out to that end is not what
happens on th other side of the cliff with the deepening anxiety among consnsumers and among businesses leading to this moment it does the real damage and could trigger a recession. >> i could not agree more. lou: all right. always on the mark. good to have you with us. we also have fox news polling suggesting the oba administration is paying the political price for its response tohe terrorist attack and benghazi. according to latest fox news polling 65 percent of voters say a president should have ordered troops to help the americans at the consulate under fire from those terrorists. the administration has carried out a cover-up of what happened. 42 percent said the obama administration is not covering of. the former ambassador to the unit nations joining us next. abuse of a higher power.
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outlook on this economy and markets in just moments here. first, and that the "moneyline" tonight weekly jobless claims falling while larger than expected number, down 29,000. retail sales up. nearly 4% above the report from one year ago. the speakers pessimism at his morning news conference provided a reason to ell for some and investors. it bears of the late afternoon meeting between the president and the speaker brought starts off lows, but the dow closed down 75 points, s&p nine breaking a 60 winning streak. nasdaq down 22. 3 million shares on the big board traded. and some dancing in the offices of a bugle and news thatapple has conceded failure on apple maps and has agreed to bring to the maps to the iphone. electronics store, he will make an offer to take the company
private by december 15th, saturday. the stock a toperformer, but on the year down about 40%. the treasury market, the selling goesn pushing the yield on the tenure tel 173%. crude oil down closing at $85.89 per barrel. joining me now, u.s. economist. let me start, -- well, irst, welcome. >> thanks for having me. lou: the little thing like the fiscal cliff approach, looking at what could be the biggest tax hike in american history. you can fiddle with the numbers and argue i guess. also, the most significant seven spending cuts in history, sequestration is a fact. what is your take as to what will be the impact if we go over the cliff? >> if we go over the cliff and no agreement is reached, even in early 2013, the economy is going to have for recession. lou: unquestionably. >> unquestionably.
the economy right now is just kind of in a moderate pace of growth right now somewhere around probably a little bit below 2 percent. if you get that tax increases that are scheduled and slated to be implemented january 1st, it's just going o be unsustainable for the consumer to spend and i will take hold where he recession is inevitle. lou: and today, watching the market, it sems to me that we were watching a rather direct transmission of jitters from washington d.c. straight to investors as we watch the market ret to the press conference. the speaker then starting to act like something had really happened because a meeting was taking place a the white house. this is -- is this the onset of this bill cliff anxiety? >> i think so. at think we're probably still another two weeks away or so from an ultimate compromise. i do thinkka deal would g done. whether or not it gets done
before january 31st is anybody's guess, but i do think the odds are probably in favor of getting it done closer to january 301st, december 31st , probably with a drop dead date of the inauguration. lou: drop dead date of the inauguration. on the market. that is a fearful expression. and it is also very terrible thing to contemplate, the fact thateither the president nor the speaker likely has any idea of what would be a smart move, at least as far as the markets in the economy going forward. the speaker held up that chart. do we have that chrt? i think it's terrible tt he did not have that charter until today. have we get that? we have to bring it up here. but this is the clearest chart. we have done number of things to show what will happen over the course of ten years to 25 and a half trillion national debt, whether it is the speaker or the obama or do nothing. as we look at this chart, i
mean, it shows clearly the spending is the problem. we have folks, like to characterize them and words of my wife would not approve of. we have some characters who are talking like a hike in taxes on the 2% is meaningful. it is purely theological and is not even address the real issue. >> i agree with that. i don't think the economy can sustain higher taxes. it does look like that higher taxes are inevitable for the upper-income individuals. it seemsike the president feels he has a mandate to bring the tax rate up. now, they arehigher savers, so if that is part of the deal, higher income individuals will pay higher taxes, whether or not it goes all the way back up to 39% r so, that is debatable. you can figure out several different permutations, but i do think that it is inevitable that part of the deal will have higher taxes.
lou: my view that has been for a certain portion of the so-called higher earners, this will not be significant to raise that rate to 39. six. most people with an honest looked, it's frankly a gift. wheth it was bid for he economy are not, we saw was in the years immediately following, tepid, some of the worst performance of job creation in th economy, frankly, not much worse and so we look to what happened after that 2000 financial economic crisis. this has been remarkable. and no one is talking with real conviction or with great credibility about what it's gog to take to get this economy going again. we are watching these folks haggle over the dam fiscal cliff we have an economy that needs to start growing, and we need to start creating jobs and get honest about business practices and public policies that will be at least, inctivized their
creation. >> i completely agree with that. i think their is a lot of red tape and regulation that is holding back this economy for backing up momentum. we have had job growth of 140 or so thousand over the past six months if you look at payroll growth. we need something more like sted a 200,000 a month to really make a heavy, meaningful way and out of growth pick up to about the potential. but to the politicians in washington don't feel, at least the private sector can take the baton from here and continue to try to spend a continue to try to cut interest rates and that policy. i think that opens up the door for, you know my real problem down the road. lou: down he road. let's talk about 2013. ben bernanke, two and a half percent inflation is the new target. six and a half% unemployment. did you ever thinkyou'd her the fed chairman said monetary policy will now have a target of six and a half% unemployment
rather than other indices and indicators? >> well, it was up pretty surprising move yesterday that they and ounces economic outcome based approach to policy rather than what thy have been doing, telling you that rates will remain low until mid 2015. they have been moving in tis direction, but the timing was a little bit surprising that they announce there already going to go that route. lou: a band-aid on the fiscal cliff, just enough to take off the front page of the newspapers in the first segments of broadcasts. is that enough to up in sure public perception ad let the economy and 23 roll on positively? >> we will see. so far the consumer has just last week began airport from the university of michigan that said that this will cliff is really worrying consumers ahead of this important holiday shopping season. so is the market's portion of politicians in washington. that could be one way you may get a deal sooner than later.
lou: i don't know which way to cross my fingers for in that deal. thank you for being here. we appreciated. up next, one of syria's biggest supporters committing te murders rain is a an end. straight ahead, we have had our differences with the epa. well, we are not here to tell you that we have back catch them all up. the latest power grab a cpa in charge of mother nature, and it could force you and other taxpayers to simply forfeid your home. our report next. ♪ americans are always ready to work hard for a better future. sincemeriprise financial was founded back in894, they've been committed to putting clients first.
covering everything from greenhouse gas emissions to oil drilling to wall street one of the more controversy regulations requiring all new cars to have black boxes beginningn 2014. supporters say those data recorders we will help determine what caused the crash. privacy advocates argue that it is interested technology and is likely to be abused. one of the government agencies that has earned a reputation for abuse is the obama administration epa. the state of virginiais suing the epa, accusing it of regulatory overreach in its efforts to control said in a buildup from a creek in fairfax county. fox news correspondent shannon green now live in washington with the report. >> going to prevent an enormous amount of development just with this one regulation. >> virginia republican attorney general says the environmental protection agency plan to regulate a single creek and the
commonwealth could cost state ancounty officials nearly half a billion dollars and private property owners their homes and businesses by forcing the virginia department of transportation and fairfax county viejo to control storm water runoff on land they don't own. >> what they're going to have to do his things like take people's houses, evict them, not the houses down, and plant grass so that the water does not float and instead soaks into the earth >> the epa says water, when there is too much to my can be classified as a pollutant giving them broad regulatory powe under the clean water act. a federal lawsuit was filed against the epa earlie this year which was joined with the democratic control fairfax county board of supervisors to despite their political differences and agree with the assessment of what the epa is proposing is illegal. the dispute we will land in federal court on friday with the
epa has been arguing its plan is in harmony with the broader purposes of the clean water act, including congresses' objectives of protecting the physical d biological integrity of waters and reducing the water quality impacts of storm water. the they signed on o the lawsuit, allowing the epa to move forward with this plan would ant the agency's sweeping new regulatory power over private property. critics say it is of hih. >> we are told by various lawyers involved in is that there is no possibility of homes being removed in this process. that is a little bit of an overstatement might the opposition to this effort. >> the parties we will meet face-to-face before a federal judge friday morning with a plan to start asking for an injunction to block the entire epa plan. by the way, the attorney geeral told me that if the epa really wants to get control the situation in may have to consider adding got to the lawsuit. lou: well, the arrogance of this
environmental protection agency and its administrators, they might just think that would be appropriate. thank you so much, as always. this next story will to do much to bolster your trust in government. the "wall street journal" reporting the national counter-terrorism center now has a massive database of the civilian information that it plans to use to track innocent people for possible suspicious behavior without probable cause. the database to potentially include everything from flight information to health records and it can be kept for up to five years. some and the obama administration or reportedly opposeto the government dragnet and invasion of privacy, but attorney-general eric holder approved it anyway. house speaker no armed with graphics and the right messa on the fiscal cliff. >> if you look at the spending problem you see it does nothing. nothing.
not to sell the spending problem lou: did he just sees high ground? the "a-team" on that and much more. striking health care workers and one judge appointed by the national labor relations board siding with and are you ready, the union. imagine that. the benghazi backlash. john kerry emerging as the leading contender to be secretary of state. ambassador john bolton with the analysis here next.
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ambassador to the united nations, fox news contributor : john bolton. ambassador, good to have you with this. withdrawing her name, acknowledged the controversand moving out of the way of the president's, well, his political initiatives. what is your reaction? >> well, obviously has to be difficult for her, but i think she looked at the road ahead in the senate and concluded it was not worth it. think it may well be a smart tactical withdrawal on her point. she might beome a national security adviser in her second term. john kerry might become secretary of state but not stay the full four years. i think this is, as i say to my difficult decision, but certainly not the end of susan rice in the obama administration lou: a new poll shows by a wide margin in this just today, president obama should have sent
our troops tobenghazi upon learning about that terrorist attack against our consulate. your reaction? >> it does not surprise me. i tell you, although some people have said susan weiss -- susan rices withdraw will now allow benghazi to sink beneath the red-green, i really don't think so. i'd think it will have the opposite effect. i think senator mccain has already made that point. the controversy over the potential nomination was diverting attention. with that cloud removed i think those who want to focus on it will be able to, and it will now be very hard for the obama administration to hide behind the pretense that this is just a way of getting susan rice. that is why the testimony next week could be so important, if she shows up, which i guess is w in doubt. lou: there seems to be some ambiguity about all of that from
the side of the state department's. we are getting some considerable suggestion from the russians. we are also assessing what is going on with china, but it appears that there is a broadening acknowledgement that the days of a sob are nearing an end. your thoughts? >> i think this statement by russian deputy foreign minister is quite significant. this is the first visible sign the russians think that he cannot be saved. there has never been any doubt about that. if he is about to lose power throughout the country and the opposition takeover, the russians have to be very worried about their naval base, the direction and new government will take, what this means for their position in the middle east as a whole. i hope they don't decide it will go after somebody like mohammad morrissey.
lou: is there any possibility in your mind what we are watching is a bit of a ruse? that there is a deal an that ruia is just simply letting events transpire to persuade others that they simply lost this when in fact they have assurances from the u.s. for their naval base and for continued representation, presence in the region? >> it is possible, but it does not look like it. there's no indication that iran is prepared to blank. i think even if russia tries to climb down to make up with the opposition to try to mitigate its losses, there is no guarantee the civil war will be over any time soon. lou: thank you for being here. appreciated. up next, it destoyed hotdog cart and the vandalized hospital
one very important thing in common. alleged union back to thackeray. those stories straight ahead. here tomorrow, former ntional security cncil spokesperson, the lease jordan, south carolina attorney general, political strategists, fox is contributor, along our uests. please be with us. stay with us. [ male announcer ] this is the age of knowing what you're made of. why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, ushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor.
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fortunately, word spread about the incident, and an on-line petition has raised more than $30,000 for him. he is back in business. a federal judge ordering a connecticut nursing home chain to reinstate nerly 600 striking union workers, despite allegations that some of them put patients' lives at risk. the judge in the case is a clinton appointee, ruling the company should have bargained more with the aclu workers before imposing pension and health care cuts. workers are now allowed back on the job next week, even though there is still an ongoing crimin investigation into acts of sabotage and a criinal acts on the part of some of those workers. the company claiming that before they went on strike some of the employees change the names of several patients doors, real cheers, remove residents wrisands, stickers indicating of the patients should be safely fed. this followed 19 months of negotiation, and ted judge was
selected by the national labor relations board. we will keep you up-to-date. angry liberal at and senior giving the president some outrageous and vice. >> there should be this lingering infestation of really corrupt people instead of trying to dismantle the wishes of the people, the man they said has been given to barack obama. i don't know what more they want. the only thing left is to work on third world dictators. lou: cler. you know, he is also very supportive of hugo chavis. i don't know. maybe there's something in it all. up next, we will take it up with the "a-team". the speaker talking with the president. we just don't know about what. they're coming right back.
♪ lou: joining us now, the "a-team," author, radio talk-show host, fox news contributor, author, columnist, pulitzer prize-winning editorial cartoonist, senior editor. good to have you with this. jetted diet, today, a 5:00 meeting following the speaker's news conference they would not talk about what they discussed. what is your reaction? a we going to have a fiscal cliff resolution? >> in niece to keep this simple and pass a bill that represents what he stands for.
down understand why he is negotiating so much. president obama is becoming less flexible. lou: back in july they passed the bill. >> right now he needs to say, i'm not going to be negotiating with myself anymore. this is what we stand for. we want to keep these tax rates on all of americans the same. we don't want to raise taxes on anyone. he is bringing out all of these charts saying a lot to talk about spending. he should have been talking about it to begin with. this should not be an argument about taxes. lou: do you agree? >> i agree. look at this administration. they have added over 5 trillion to the national debt in record time, four years. and they come up with a plan that ds not even include real dramatic cuts in spending but rather increases. imagine if that was fed back into the private market, what kind of nnovations and job creation it would create. that is the bottom line.
how you get a sustained eonomic growth and revenue from growth, not from tax revenue. $82 billion that does not even test the deficit. lou: i think the speaker stepped up big time. the clearest his message has been. wi the visually that he had showing that the real problem is spending which we have been saying incessantly from the beginning, i think he took -- by really think he sees the high ground in this negotiation. >> i hope he meant to today. when you look at the last four years, president obama has generally talked a good game about wanting to work with republicans across the aisle, deal with entitlements. every time the republicans run toward him like your little puppies ready to negotiate in good faith, and every single time the president pulls the rug at the very end. lou: breaking our hearts. >> breaking hearts. this time aroun coming immediately after the election he feels like he does not hold any cards. i was heartened to hear what he
had to say. really hope he means it can and i hope he is willing to stick to his guns. already put nearly ahundred billion of revenue on the tabbl. now he's going to be talking about spending. it's a little late in the game, but i thik this president wants to go over the cliff. he once the rates to go up, the defense sequester, and that think he's ready to take the nation know or. lou: to that would say to my take a look at this cartoon. michael ramirez. there it is. i love this. belonging obviously to a union member supporter. amongst my favorite bumper stickers, of course, would be proud liberal, your money, our choice. i love that. if you can see that there, it is terrific. pro-choice, just not for workers. we will ta that up with the "a-team" year in just moments. ♪ ♪
lou: we re just talking aut michael's latest editorial cartoon. i love it. pro-choice, but not for workers as it follows the festivities in lansing, michigan, where conservative coedians, they got physical with him. i don't want to say violence. i just can't understand the behavior that isn't reported on the whole time he will, broadcast networks. only abc even alluded to violence during a demonstration. >> writes. it was much worse than the other stat as well. they imposed their philosophical ideas of the money to union
members pay, and it goes to the political progressives. lou: michael, that is an overstatement. only 93% of the money raised by e public employee unions goes to democrats. that hyperbolic language, michl, i think it is incredible. i don't think most people knew about it until this week. >> remember that the same networks that ignored what happened to stephen crocker, they spent months trying to find beilenson the tea party so they had something to report. i know we have a legitimate use of violence, you have it on video. they refuse to knowledge that it is happening. >> it wasn't just to stephen, it was others who have their livelihood stomped on. you had americans for prosrity, the attempt was torn down by the unions.
you are dealing with a very corrupt and incestuous relationship between the union, the democratic party, and the media. they are all on the same ideological page and they all protect each other. >> it is a matter of the media trying to inflate -- the people they support from exposure. we saw that not only in the case of the unit, but we saw that this was the biggest lie of the year, and i could name a dozen obama flies that were far worse. lou: we have time. the idea that susan rice has dropped out of the contest for secretary of state, it is clear that secretary of state clinton is exiting. is john kerry -- is a great idea? if you talk about embarrassing moments at a hearg, despite all the bipartisan good will, as my have some very awkward
moments for this president. >> i think she would've been a bigger distraction. but i think a lot of the comments he has made with respect to our troops, yes, this is not going to be something that folks on the right would embrace in a position of leadership. i think when people were talking about him in regards to the secretary of defense, a lot of things were about how he treated our troops poorly and i worry about him in opposition. absolutely. >> i can tell you that editorial cartoonists are all giving standing ovations at the prospect of john kerry being the nominee. the sad thing is that he is probably a better choice than susan rice. lou: we will see this transparent administration and his commitment to this